Information Technology Projects Course

Professor Arthur Goldberg
NYU
Spring 2004
Project Proposal

Moody's Investor Service

Company Description

As it says on their web page, "Moody’s Investors Service is among the world’s most respected, widely utilized sources for credit ratings, research and risk analysis. The firm publishes market-leading credit opinions, deal research and commentary that reach more than 3,000 institutions and 20,000 subscribers around the globe.
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Customers include a wide range of corporate and governmental issuers of securities as well as institutional investors, depositors, creditors, investment banks, commercial banks, and other financial intermediaries.
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Moody’s Corporation (NYSE:MCO) comprises two subsidiaries: Moody’s Investors Service and Moody’s KMV. The corporation had reported revenue of $1.0 billion in 2002. The corporation employs approximately 2,100 people worldwide and maintains offices in 18 countries."

Moody’s Systems Development is one of four groups within Moody’s Information Technology department. Its primary focus is the development of new software applications for both internal and external products, from customizing ERP solutions such as PeopleSoft to in-house development such as moodys.com.

Proposal: Prototype a Billing Modeling Engine

Like most companies, Moody's revenue is essentially given by quantity of sales times price.  Basically, Moody's quantity of sales depends on the overall need for bond ratings which is determined by the 'issuance', or the number of bonds being issued in the financial marketplace, and Moody's marketshare.  Moody's is the market leader, but it competes with S&P and Fitch. 
Moody's prices are set by Moody's.  Moody's prices it rating services in many ways, including such examples as a flat annual amount for a customer, a fee that depends on offering size, etc.  The relationships between price and marketshare are not widely known, although some experts in Moody's may be able to estimate them.  Because Moody's prices in many ways there are many such relationships.
The goal of this project is to design and prototype a system that will estimate Moody's total billings, as a function of Moody's pricing.  A significant part of the project will involve considering what forms of models should be incorporated in the Billing Modeling Engine.  Possible forms include rule-based models, analytical models and table-driven models.
The platform for this project remains to be decided.  Possible choices include .NET (from Microsoft); Hyperion's Planning, which is a multi-dimensional analytic engine that can be customized; and possibly Java.

Intern Address

99 Church Street
New York, NY 10007

Company Web site

www.moodys.com

Authorizing manager

Eric Horgan, Vice-President Systems Development Group, Eric.Horgan@moodys.com,  212 553-4382

Project manager

David Kline, Project Manager of the Multi-dimensional Analysis Project in the Financial Systems Group, David.Kline@moodys.com,  212 553-7446

Meeting hours

Meeting outside business hours would be possible.  David is "pretty easy going". He generally avoids working a lot on weekends, but he lives in Manhattan, so in general, he can be available for scheduled after hours meetings.

Resources that will be made available to students

The necessary software tools and data.  Access to Moody's experts.